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Essel Group ME and Gensource Potash form joint venture company

Published by
World Fertilizer,

Essel Group ME Ltd has executed a shareholder agreement with Gensource Potash Corp. to create a joint venture (JV) company, Vanguard Potash Corp., pursuant to the memorandum of understanding between the two parties announced on 29 November 2016.

The purpose of the JV company is the construction and operation of the new Vanguard potash production facility in Saskatchewan, which will bring together technical innovation, management expertise, international logistics and capital.

EGME’s Joint Managing Director and Group CEO, Punkaj Gupta, commented: “I am delighted to be signing the Shareholder Agreement, a key moment for the Vanguard project, EGME and Gensource. This is a landmark event as we work towards developing this iconic asset, in order to meet the growing global potash demand.”

He continued: “We are very pleased to be working with Gensource’s highly experienced and innovative team, with today’s announcement further strengthening our relationship and providing increased certainty for the project. Vanguard is a key part of EGME’s portfolio, and this JV underlines our continued long-term commitment to developing high-quality assets in the natural resources sector.”

 Gensource’s President and CEO, Mike Ferguson, said: “This is the most significant milestone for Gensource to date. Our investors are aware that Gensource’s business plan has been to create a joint venture with a strategic partner who can bring the required financing and commercial expertise to the project. The JV will begin with the construction of one of Gensource’s small scale facilities with target production of 250 000 tpy. Subsequently, we aim to increase production from that initial 250 000 tpy to a minimum of 1 million tpy. EGME brings the necessary global business experience and financing to complement Gensource’s highly-skilled development team, rich potash resources and innovative extraction technologies. The value we aim to create is much greater than the sum of the investments in Vanguard.”

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